The country's largest cement producer, PT Seman Gresik, plans to withdraw its investment from a US$320 million plant due to the country's tough land acquisition regulations.
The company's head of communications, Saifuddin Zuhri, said the plant, located near Kendeng Mountain in Pati regency, Central Java, was expected to produce 2.5 million tons of cement annually.
"There hasn't been an agreement between the company and residents. If we can't reach a deal by the end of this month, we will walk away from Pati as there are several other regencies interested in our offer," he said.
He said the company would divert its investment to Rembang regency in Central Java or one of three other regencies in West Java.
The company has received permission from the government for 2,000 hectares, but the company only needs 1,432 hectares to build the plant. Most of ...